1                  CITY InVESTMENT PLAN

 

1.1                                    Introduction

The City Investment Plan is developed after an assessment of the existing infrastructure and service delivery gaps and various stakeholder consultation. While identifying the sector specific strategies and implementation actions, available proposals and Detailed Projects Reports were reviewed. The strategies identified for improvement in service delivery include the policies, programmes, reforms and creation of infrastructure assets. This chapter summarises the sectoral capital investment requirements and consolidates the overall invstment requirement for the city.

1.2                                    Caveats for City Investment Plan

The caveats for the city investment plan are highlighted hereunder

        The cost estimation is indicative based on preliminary estimation

        The project costs and its scheduling are at current prices and escalations are not considered

        The cost of land and restoration & rehabilitation of Projects Affected People are not considered in the project cost estimated. Some projects may require land acquisition and these costs need to be accounted while preparing the DPR. The GoHP is eligible for financing of land acquisition cost for private land under JNNURM

        For public projects, funding is assumed based on eligible 80% grant from GoI under JNNURM and balance 20% to be contributed by GoHP for projects to be implemented by GoHP and its agencies and 10% each by SMC and GoHP for projects to be implemented by SMC

        The projects amenable for private sector investment like parking, tourism, satellite township are structured on private sector financing

        For projects to be structured on PPP like parking projects, the funding is assumed based on viability gap funding with eligible 20% grant from GoI and balance 80% investment to be brought in by the private sector. For projects structured on BOT or its variants, 100% funding assumed from private sector

        The project structures and implementation framework recommended are indicative and may vary based on detailed feasibility

        While structuring the project, it is assumed that the availability of government support is critical for the project

        Certain interventions/projects identified like tunnels, pedestrain staircases, elevators etc may not strictly fall under eligible project but are critical  for survival and development of Shimla, it is suggested that MoUD take cognizance of the special needs of the hill city

 

1.3                                    Summary of Investments with identified projects

The estimated capital investment required for the city development and providing services to the current and future population under the SPA is around Rs. 3898 Crore. The details with sectoral contribution are shown in Table 21.1.

Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 1  Summary of Sectoral Investments

S. N

Sector

Total Investment Need at Current Prices (Rs. Lakhs)

Sectoral Contribution (%)

1

Traffic & Transportation

96900.9

24.9%

2

Decongestion

4168.0

1.1%

3

Storm Water

1408.3

0.4%

4

Water Supply

65557.0

16.8%

5

Sewerage

17855.7

4.6%

6

Governance

3050.0

0.8%

7

Planning

1000.0

0.3%

8

Soid Waste

2975.0

0.8%

9

Tourism

6600.0

1.7%

10

Environment & Urban Forest

2200.0

0.6%

11

Disaster Management

2505.0

0.6%

12

Heritage

22900.0

5.9%

13

Housing

100000.0

25.7%

14

Urban Poor

62700.0

16.1%

Total

389819.8

100%

       

The highest allocation goes to Housing & Traffic and Transportation which accounts for about 25% each followed by water supply and urban poor approximately 16 % each and addresses two most important issue of decongestion and water scarcity of the town. 

The funding sources identified for the total investment requirement of Rs. 3678 crore include GoI Grant under JNNURM, budgetary sources and loans raised by GoHP and SMC and investments from private sector. The fund allocation proposed is summarised in Table 21.2.

Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 2  Funding Sources for City Investment Plan

Agency

Rs. Crore

GoI

2143.4

GoHP

525.4

SMC

28.7

Pvt. Sector

1200.7

Total

3898.2

 

Total outgo of funds on year on year basis is shown in Table 21.3

 

Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 3 Year wise investment need

Year

Investment Need (Rs. Lakh)

2007

24349.0

2008

66432.6

2009

114834.3

2010

78631.2

2011

59267.8

2012

46305.0

Total

389819.8

 

 

1.4                                    Sectorwise Sources of Funds & impementation framework

 

The summary of the sectoral investments is presented in Table 21.4. The projectwise details, funding mechanism and probable implementation framework for each sector is presented in subsequent tables.


 

Table   STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 4  Summary of the Sectoral sources of funds

Sector

Total (Rs. Crore)

Sources of Funds(Rs. Crore)

GoI

GoHP

SMC

Pvt Sector

Traffic & Transportation

969.0

702.0

191.3

2.5

73.2

Decongestion

41.7

33.3

6.5

1.8

0.0

Storm Water

14.1

11.3

2.3

0.5

0.0

Water Supply

655.6

524.5

124.0

7.1

0.0

Sewerage

178.6

142.8

23.5

12.2

0.0

Governance

30.5

24.4

6.1

0.0

0.0

Planning

10.0

8.0

2.0

0.0

0.0

Soid Waste

29.8

23.8

3.3

2.6

0.0

Tourism

66.0

40.8

9.2

1.0

15.0

Environment & Urban Forest

22.0

17.6

3.4

1.0

0.0

Disaster Management

25.1

20.0

5.0

0.0

0.0

Heritage

229.0

93.2

23.3

0.0

112.5

Housing

1000.0

0.0

0.0

0.0

1000.0

Urban Poor

627.0

501.6

125.4

0.0

0.0

Total

3898.2

2143.4

525.4

28.7

1200.7

 


 

1.4.1          Traffic & Transportation

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs.Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Standardization of Cart Road

HPPWD

EPC

5225

4180

1045

 -

Standardization of Municipal Roads

SMC

EPC

1516

1212.8

151.6

151.6

 -

New Links

HPPWD

EPC

5600

4480

1120

 -

 -

HOCS

HPPWD & Transport Department

EPC

12660

10128

2532

 -

 -

Junction Improvements

HPPWD

EPC

1500

1200

300

 -

 

Parking Facilities

SMC/ Private Sector

VGF

12200

2440

2440

 -

7320

Lifts and Escalators

HPPWD & Transport Department

EPC

1464

1171.2

292.8

 -

 -

Tunnels

HPPWD

EPC

8925

7140

1785

 -

-

MRTS

SPV

EPC & O&M through SPV

45000

36000

9000

-

-

Bus Shelters and Local Terminals

Transport Department

EPC

500

400

100

-

-

Ropeways

Transport Department

EPC

327

261.6

65.4

-

-

Pedestrian Facilities

SMC, HPPWD

EPC

483.9

387.1

96.8

 -

Street Lighting

SMC

EPC

500

400

 -

100

Technical Studies: Master Plans and DPRs

UTTA

-

1000

800

200

 -

Total

96900.9

70200.7

19128.6

251.6

7320.0

 


 

1.4.2         Decongestion

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Shifting of Commercial Activity Centres

SMC

EPC

1798.5

1438.8

179.85

179.85

 -

Bypasses to the City

HPPWD

EPC

2369.5

1895.6

473.9

 -

 -

Total

4168.0

3334.4

653.8

179.9

-

 

1.4.3         Storm water

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Renovation of Identified Natural Drains

SMC

EPC

413.76

331

41.376

41.376

 -

Renovation of Open Drains

SMC

EPC

84.5

67.6

8.45

8.45

 -

Construction of roadside drains as per drainage design

PWD

EPC

810

648

162

 -

 -

Technical Studies: Master Plans and DPRs

SMC

-

100

80

20

 -

 -

 

 Total

 

1408.26

1126.6

231.826

49.826

-

 


 

1.4.4         Water Supply

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Technical Studies: Master Plans, DPRs and Energy Audit Studies

I&PH

-

500

400

100

 -

 -

Rainwater harvesting and water conservation

SMC

EPC

240

192

24

24

 -

Augmentation of Water Supply Scheme for Shimla City from River Pabbar

I&PH/SPV

EPC & O&M through SPV

57954

45363

11591

-

 -

Rehabilitation of water supply transmission and distribution network and augmentation/extension of distribution network

SMC, I&PH/SPV

EPC

6563

5251

656

656

 -

Water Monitoring Cell

SMC, I&PH

EPC

300

240

30

30

 -

 

 Total

 

65557

52446

12401

710

-

 

1.4.5         Sewerage

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Rehabilitation of the main sewerage network

I&PH

EPC

4899.1

3919.3

979.8

 -

Provision of sewerage network for areas of Dhalli, Tutu, New Shimla and special areas of Ghanahatti, Kufri and Shoghi

SMC, I&PH

EPC

12180.3

9744.2

1218.0

1218.0

Provision of missing links to connect the refurbished old sewerage network with new sewerage network.

I&PH

EPC

576.3

461.0

115.3

Technical Studies: Master Plans and DPRs

I&PH

-

200.0

160.0

40.0

 

 Total

 

17855.7

14284.5

2353.1

1218.0

0.0

 


 

1.4.6         Governance

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs.Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Computerization & Establishment of information system

SMC

EPC

1000

800

200

 -

 -

Implementation of BPR Plan & E-Governance

SMC

-

1000

800

200

 -

 -

Establishment of training institutions

UD, GoHP

EPC

500

400

100

 -

 -

Training of SMC & Parastatal agencies' staff

SMC

-

500

400

100

 -

 -

Business Process Re-engineering Study

SMC

-

50

40

10

 -

 -

 

 Total

 

3050

2440

610

0

0

 

1.4.7         Planning

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Renewal of core area

SMC

EPC

 

0

0

0

 

Development GIS Based spatial database

SMC

-

500

400

100

 -

 -

Capacity Building on GIS based Planning

SMC

-

500

400

100

 -

 -

 

 Total

1000

800

200

0

0

 


 

1.4.8         Solid Waste Management

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Door to door Collection

SMC

Service Contract

200

160

20

20

Street Sweeping

SMC

EPC

200

160

20

20

Storage and transportation

SMC

EPC & Service Contract

675

540

67.5

67.5

 

Integrated Waste Treatment & Disposal Facility

SMC

DBO

1500

1200

150

150

 

Upgradation of bio-medical facility

SMC

-

50

40

5

5

 

Others (Capacity Building, Training and Technical Studies)

SMC

-

350

280

70

 

 

Total

2975

2380

332.5

262.5

 

 

 

1.4.9         Tourism

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Upgradation of Naldhera Golf Course

Tourism Dept

EPC

500

400

100

 

 

Development of Nature Park at Craignano

Forest Dept

EPC

1500

1200

300

 

 

Development of Theme Part

Tourism Dept/Pvt. Sector

BOT

500

 

 

 

500

Development of Skating Ring

Tourism Dept

EPC & O&M Contract

1000

800

200

 

 

Beautification of Shimla

SMC

EPC

1000

800

100

100

 

Eco-tourism Projects

Forest Dept

BOT

1000

 

 

 

1000

Upgradation of Tourist Information Center

Tourism Dept

EPC

500

400

100

 

 

Others (Capacity Building, Training and Technical Studies)

GoI/GoHP

-

600

480

120

 

 

 Total

6600

4080

920

100

 1500

 


 

1.4.10      Environment, Disaster Management & Forests

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Network of Fire Hydrants and upgradation of Fire Station

SMC & Fire Dept

EPC

105

84

21

 - 

Prevention & Control of Land Slide

Forest Dept/PWD

EPC

2000

1600

400

 - 

Conservation of Soil Erosion

Forest Dept

EPC

500

400

100

 - 

Upgradation of existing Parks

SMC

EPC & O&M Contract

1000

800

100

100

-  

Community Awareness

GoHP

-

500

400

100

 - 

Technical Studies

GoHP

-

600

480

120

 - 

  Total 

4705

3764

841

100

0

 

1.4.11       Heritage

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Restoration & Conservation of stage government owned buildings

Heritage Board

EPC & BOT

22500

9000

2250

 

11250

Technical Studies

Heritage Board

-

400

320

80

 

 

 

 Total

 

22900

9320

2330

0

11250

 


 

1.4.12      Housing

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

Development of Satellite townships

HIMUDA

BOT

100000

 

 

 

100000

 

 Total

 

100000

0

0

0

100000

 

1.4.13      Urban Poor

 

Project Name

Implementation Agency

Suggested Implementation Framework

Project Cost (Rs. Lakhs)

Funding (Rs. Lakhs)

GoI

GoHP

SMC

Pvt. Sector

R&R of project Affected People *

GoHP

-

22000

17600

4400

 -

 -

Resettlement & Rehabilitation of slums

HIMUDA

EPC

30000

24000

6000

 -

 -

In-situ upgradation of slums

SMC

EPC

10000

8000

2000

 -

 -

Construction of labour hostels

SMC

EPC

250

200

50

 -

 -

Construction of working women's hostels

SMC

EPC

250

200

50

 -

 -

Studies

UD, GoHP

-

200

160

40

 -

 -

 

 Total

 

62700

50160

12540

0

0

* Tentative provision

 

 


 

1.5                                    Financing Strategies

 

In order to create the assets and maintan the assets created through JNNURM funds will be needed. Moreover this mission is an important stepping stone to make the Urban Local Bodies self-sufficient and financially independent. In order to ensure the above, the following steps are being taken:

Improving financial status of the ULB:

It is expected that the implementation of reform agenda prescribed under JNNURM will improve the financial condition of the SMC. The significant improvement will be visible post JNNURM period when the required assets are created through financing and reform implementation is completed.

Public Private Partnership Projects

The JNNURM grant may be leavraged to attract the private sector investment whereever possible. Various PPP options like Service Contracts, BOT, concessions, JV and Community Based Provisions may be considered.

External Financing used by ULB

With commitment to implement the reform agenda and sanction from GoI under JNNURM, it is expected that SMC shall be in a position to raise the debt from the financial institutions at competitive rates. Certain measures like credit rating shall also help SMC to raise the funds.